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Standards For Charity Accountability

Governance

DescriptionOrganizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.

DescriptionAn organization shall have a minimum of three evenly spaced meetings per year of the full governing body with a majority in attendance, with face-to-face participation. A conference call of the full board can substitute for one of the three meetings of the governing body. For all meetings, alternative modes of participation are acceptable for those with physical disabilities.

Description
Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.

Description
No transaction(s) in which any board or staff members have material conflicting interests with the charity resulting from any relationship or business affiliation. Factors that will be considered when concluding whether or not a related party transaction constitutes a conflict of interest and if such a conflict is material, include, but are not limited to: any arm's length procedures established by the charity; the size of the transaction relative to like expenses of the charity; whether the interested party participated in the board vote on the transaction; if competitive bids were sought and whether the transaction is one-time, recurring or ongoing.

Description
Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.

DescriptionSpending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.

DescriptionAvoid accumulating funds that could be used for current program activities. To meet this standard, the charity's unrestricted net assets available for use should not be more than three times the size of the past year's expenses or three times the size of the current year's budget, whichever is higher.

DescriptionMake available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.

Description
Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.

Description
Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.

Fund Raising & Info

Description
Have solicitations and informational materials, distributed by any means, that are accurate, truthful and not misleading, both in whole and in part. Appeals that omit a clear description of program(s) for which contributions are sought will not meet this standard. A charity should also be able to substantiate that the timing and nature of its expenditures are in accordance with what is stated, expressed, or implied in the charity's solicitations.

Description
Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.

Description
Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.

Description
Address privacy concerns of donors by (a) providing in written appeals, at least annually, a means (e.g., such as a check off box) for both new and continuing donors to inform the charity if they do not want their name and address shared outside the organization, (b) providing a clear, prominent and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the charity and how this information will be used, (ii) how to contact the charity to review personal information collected and request corrections, (iii) how to inform the charity (e.g., a check off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the charity has in place to protect personal information.

Description
Clearly disclose how the charity benefits from the sale of products or services (i.e., cause-related marketing) that state or imply that a charity will benefit from a consumer sale or transaction. Such promotions should disclose, at the point of solicitation: (a) the actual or anticipated portion of the purchase price that will benefit the charity (e.g., 5 cents will be contributed to abc charity for every xyz company product sold), (b) the duration of the campaign (e.g., the month of October), (c) any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

Description
Respond promptly to and act on complaints brought to its attention by the BBB Wise Giving Alliance and/or local Better Business Bureaus about fund raising practices, privacy policy violations and/or other issues.

Conclusion

Purpose

Year, State Incorporated

1987, California

Stated Purpose

"to campaign for the forests, their inhabitants and the natural systems that sustain life by transforming the global marketplace through education, grassroots organizing, and non-violent direct action."

Programs

RAN runs campaigns that work to end North America’s fossil fuels dependency, protect endangered forests and the rights of indigenous people, and institute change around the world through education, grassroots organizing, and non-violent direct action. The organization engages in market advocacy campaigns, which are aimed to mobilize public opinion, shareholder advocacy, and consumer buying power to affect businesses to behave in more environmentally responsible ways. RAN reports that it is committed to running successful campaigns that push companies to protect endangered forests and the communities that depend on them, transform North America’s energy expansion into a clean energy future, and to combat global warming.

Public education

2,958,091

Education

113,791

Total Program Expenses:

$3,071,882

Governance & Staff

Chief Executive

Rebecca Tarbotton, Executive Director

Compensation*

$95,020

Chair of the Board

Andre Carothers

Chair's Profession / Business Affiliation

Principal, Spruce Advisers

Board Size

12

Paid Staff Size

32

*2010 compensation includes annual salary and, if applicable, benefit plans, expense accounts, and other allowances. The salary information above for Ms. Tarbotton is not for an entire year, as the organization has indicated that she did not start at RAN until July 2010.

Fund Raising

Method(s) Used:

RAN incurred joint costs of $160,263 for informational materials and activities that included fund raising materials. Of those costs $103,635 was allocated to program expenses and $56,628 was allocated to fund raising expenses.
Fund raising costs were 16% of related contributions. (Related contributions, which totaled $3,983,627, are donations received as a result of fund raising activities.)

Tax Status

This organization is tax-exempt under section 501(c)(3) of the Internal Revenue Code. It is eligible to receive contributions deductible as charitable donations for federal income tax purposes.

Financial

The following information is based on RAN's audited financial statements for the fiscal year ended June 30, 2011.

Source of Funds

Grants and contributions

1,681,170

Major gifts/family foundations

1,209,108

Public support and membership

771,376

Special events income

321,973

Other

79,029

Investment income

1,014

Change in present value of receivables

945

Royalties

126

Realized losses on investments

-170

Total Income

$4,064,571

Programs: 78%

Fundraising: 16%

Administrative: 6%

Total Income

$4,064,571

Program expenses

3,071,882

Fundraising expenses

$630,091

Administrative expenses

$252,777

Total expenses:

$3,954,750

Income in Excess of Expenses

109,821

Beginning Net Assets

1,407,280

Ending Net Assets

1,517,101

Total Liabilities

553,033

Total Assets

2,070,134

An organization may change its practices at any time without notice. A copy of this report has been shared with the organization prior to publication. It is not intended to recommend or deprecate, and is furnished solely to assist you in exercising your own judgment. If the report is about a charity and states the charity meets or does not meet the Standards for Charity Accountability, it reflects the results of an evaluation of information and materials provided voluntarily by the charity. The name Better Business Bureau is a registered service mark of the Council of Better Business Bureaus, Inc.

This report is not to be used for fund raising or promotional purposes.